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Cardano (ADA) Wallets Show Lower Activity Levels: Time to Reassess Network Health?

A closer look at Cardano's wallet activity and market performance

Cardano's recent decline in wallet activity has sparked discussions about its current market dynamics and future potential.

Key takeaways:

  • Cardano's non-empty wallets have decreased by 0.1% in the last three months.
  • Despite short-term price declines, upcoming network upgrades could influence ADA's trajectory positively.

Cardano (ADA) has shown a slight decrease in non-empty wallet activity, according to recent data from Santiment. Over the past three months, while Bitcoin and Dogecoin have seen increases of 2.6% and 13.8% in their non-empty wallets respectively, Cardano's active wallets have dipped by 0.1%. This drop has occurred amidst broader market fluctuations and has raised concerns about the level of user engagement and interest in ADA.

Santiment noted in a tweet:

"Despite the market's choppy conditions, Bitcoin and Altcoin wallets, especially for assets like Dogecoin, have shown growth, contrasting with Cardano’s slight decline," 

Cardano's market outlook amid challenges

The decline in wallet activity coincides with a significant price drop for Cardano over the last month, with ADA experiencing a 28.7% reduction in value, as reported by CoinGecko. However, the cryptocurrency has managed a 17.8% increase on a yearly basis. Currently, ADA is trading up by 2.2% in the last 24 hours at $0.4697, following a rebound from recent lows of $0.445.

Despite these challenges, Cardano is gearing up for several network upgrades that could enhance its fundamentals and potentially reverse the current negative trend. Historical data and market patterns suggest that ADA might be setting up for a significant breakout. Crypto analyst Ali highlights: 

"Cardano is stabilizing before a breakthrough, similar to the pattern from 2018 to 2021. If this trend continues, ADA could climb to $1.70 and possibly break out to $5."